How guaranteed are our investments in financial institutions in Canada?

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How much money do banks in Canada guarantee in our bank accounts? The reader will be surprised destiny, Lucette Gauthier. And how guaranteed are our investments at a credit union in Quebec? Diane du-Perre wonders for her part.

Recent upheavals in the global banking sector have brought the issue of deposit protection in financial institutions back on the agenda.

In Canada, federally regulated banking institutions fall under the Canada Deposit Insurance Corporation (CDIC). For entities regulated in Quebec, this responsibility rests with the Autorité des marchés financiers (AMF).

CDIC members include banks, federally regulated credit unions, and loan and trust companies. For the AMF, each of the desjardins caisses of Quebec, the Fédération des caisses desjardins du Québec, the National Bank Trust, Beneva and our financier – Prets et Placements qualify as authorized depository institutions.

For coverage or protection in case of bankruptcy, deposits are protected up to $100,000 per category of deposit and the AMF explains to the authorized depository institution, including principal and accrued interest.

Deposit category

The $100,000 protection applies to an individual account as well as a joint account, deposit in trust, TFSA, new TFSAAPP, retirement savings (RRSP and RRIF), education savings (RESP) and disability. Savings (RDSP).

This protection can exceed $100,000 depending on the number of eligible accounts and the number of authorized institutions or credit unions you do business with.

And for protected, we’re talking about deposits in Canadian dollars and foreign currencies in checking and savings accounts, guaranteed investment certificates and other term deposits. Stocks, mutual funds and segregated funds, bonds and debentures, mortgage securities, shares or other equity securities, treasury bills, life insurance contracts and crypto-assets are not covered.

However, some of these financial products may qualify for other protection programs. On the AMF website, we find the names Assuris (life insurance), PACICC (casualty insurance) and the Canadian Investor Protection Fund (securities).

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